Cushman sues broker to recoup bonus money

(Crain’s) — The local branch of Cushman & Wakefield Inc. is suing prominent suburban office broker Jack Reardon to recoup more than $177,000 — most of the signing bonus used to lure him away from a rival firm early this year.

Cushman fired Mr. Reardon “for cause” on or about Aug. 24 and several days later demanded reimbursement of the signing bonus money. Mr. Reardon “has failed and refused” to comply, the company alleges in its breach-of-contract suit, which doesn’t disclose the reason for his dismissal.

Mr. Reardon, 47, who in September joined rival brokerage NAI Hiffman, declines to comment other than saying: “I’m going to move on. It’ll hopefully be resolved soon.”

A spokesman for New York-based Cushman declines to comment.

Cushman paid Mr. Reardon a $200,000 signing bonus in February after the firm hired him away from CB Richard Ellis Inc., according to the suit. He also was to be paid $100,000 bonuses on the first and second anniversaries of his employment, according to a copy of his contract that was included with the suit, which was filed Sept. 30 in Cook County Circuit Court.

The contract says if Mr. Reardon were to leave Cushman within five years he was required to repay the signing bonuses on a prorated basis, unless his departure were due to death, disability, an ownership change or termination without cause. Cushman’s suit says that given his Aug. 24 termination, the firm is owed $177,534 of the initial $200,000 bonus.

David Petersen, chief operating officer of Oakbrook Terrace-based NAI Hiffman, where Mr. Reardon is now a senior vice-president, says he wasn’t aware of the litigation or the terms of Mr. Reardon’s contract.

“I know Jack is a top performer and a man of integrity who lives up to his commitments,” Mr. Petersen says. “It’s pretty common knowledge what the big guys (firms) are doing in buying people in. Sometimes those deals work out and sometimes they don’t.”

Cushman has lagged its rivals in the Chicago market in recent years and has had four office heads since 2007. The firm in May said it was looking to hire a new office leader after the departure of Aaron Block, who held the post for less than a year.

The company heralded the arrival of Mr. Reardon, who represents office building owners in the northwest suburbs. His hiring “continued (the firm’s) streak of game-changing personnel additions,” Cushman said in a news release.

Mr. Block said in the release: “I can’t think of a better person than Jack Reardon to help us achieve our very ambitious goals in this area. Clients and colleagues alike universally respect and admire Jack; he’s the kind of guy that other people want to be around.”